OnDeck Closes On $200 Million Asset-Backed Debt Facility By Credit Suisse
OnDeck, the online lender for small business , announced it closed on a $200 million asset-backed revolving debt facility. The debt facility is by Credit Suisse. In addition to other funding sources, OnDeck said in a press release announcing the debt facility, it may now obtain funding under the new credit facility with Credit Suisse by accessing $125 million of committed capacity and an additional $75 million of capacity available at the discretion of lenders.
“OnDeck has emerged as a leading provider of growth capital to small businesses around the country,” said Jon-Claude Zucconi, managing director of Credit Suisse, in the press release. “The team’s innovative vision and commitment to financing is vital to expansion and growth in the small business community.”
Under the facility, loans will be made to Prime OnDeck Receivable Trust II, LLC, or PORT II, a wholly owned subsidiary of OnDeck, to finance PORT II’s purchase of small business loans from OnDeck . The revolving pool of small business loans purchased by PORT II serves as collateral under the facility. OnDeck is acting as the servicer for such small business loans.
OnDeck said it plans to initially use a portion of this facility, together with other available funds, to optionally prepay in full the existing $100 million Prime OnDeck Receivable Trust facility, which was scheduled to expire in June 2017. “This transaction marks a continuation of our financing strategy to diversify funding sources, extend debt maturities and create additional funding capacity to pave the way for future loan growth,” said Howard Katzenberg, CFO of OnDeck, in the same press release. “We are pleased to have Credit Suisse, a leading global financial institution, support OnDeck in our mission to power the growth of small business through lending technology and innovation.”
“OnDeck Closes On $200 Million Asset-Backed Debt Facility By Credit Suisse” PYMNTS.com, December 12, 2016. Accessed via: http://www.pymnts.com/news/investment-tracker/2016/ondeck-closes-on-200-million-asset-backed-debt-facility-by-credit-suisse/